The Retail Revolution: Harnessing the Power of Mobile Solutions How Retailers Can Boost Personalization, Productivity and Profitability

Amazon CEO Jeff Bezos jolted the world when he shared his vision

of delivering products ordered online in less than 30 minutes

to any location using autonomous drones. Apple activated its

groundbreaking iBeacon device in 254 retail stores across

the United States;1 this tiny device gathers data about the

exact location of a consumer in a store, enabling retailers to

deliver onsite promotions targeted to their specific interests.

And eBay joined forces with three retailers to launch "digital

storefronts" in San Francisco that enabled holiday shoppers to

purchase goods from “shoppable windows,” pay for products

on their mobile devices and coordinate free home delivery.

With more than six billion mobile subscriptions active around

the world,2 the retail ground is shifting. Mobile technologies

such as 3G and 4G networks, Machine-to-Machine (M2M)

solutions, Wi-Fi, and location and behaviour-based data

analytics are dramatically changing how consumers make

decisions, engage brands and purchase products. Success in

this new retail world demands business strategies that

leverage mobile innovations. These technologies are no

longer the sole domain of the Chief Information Officer; they are

now essential tools in the Chief Marketing Officer’s arsenal.

Executive Summary

The 2013 holiday season

underscored the revolutionary

change afoot in the retail sector.

Retail leaders such as Amazon,

Apple and eBay captivated

consumers with exciting

innovations that will enhance

the shopping experience both

today and tomorrow.

1 http://www.zdnet.com/apple-launches-ibeacon-in-254-stores-to-streamline-shopping-experience-7000024026/

2 Source: International Telecommunications Union, February 2013

They unleash new opportunities for merchants to increase personalization, productivity and profitability. They

also pose big questions about how to capitalize on the many benefits of this technology. Bombarded with

options and uncertain about how to begin, retailers may defer decision-making, or worse, take no action at

all. Risk-averse merchants will be left behind as bolder leaders embrace mobile-enabled shopping.

This white paper aims to provide critical insight and help merchants:

• Understand the mobile-enabled retail landscape and the new connected customer;

• Explore key opportunities presented by mobile solutions in the retail sector, and how they can

help deliver a more personalized and positive customer experience, as well as boost retailer

productivity and profitability;

• Learn how these technologies are being applied in the Canadian and global retail markets; and

• Offer recommendations on how retailers can use mobile technologies to gain competitive

advantage, improve decision-making and increase return on marketing dollars and achieve

greater results.

With aggressive American and European retailers entering the Canadian market, the time to develop

a mobile strategy and exploit wireless capabilities to increase competitiveness—and sales—is now.

“Today, customers walk through our doors with smartphones that constantly stream data,

and directly influence the path to purchase. This is just one facet of the sea change in the

shopping landscape. As a retailer, we recognized that we must adapt to this new digital

reality, or be left behind. Every merchant, large and small, can embrace mobile technologies

to enhance business performance and customer experience. A key to success: trusted experts

who can help retailers find the right solutions, and guide implementation.”

Eugene Roman, Senior Vice President,

Information Technology and Chief Technology Officer, Canadian Tire

2

In our highly connected world, there are almost as many

mobile subscribers as people on earth.3 Ninety-one percent

of the global population owns a mobile phone and 56

percent owns a smartphone.4 Nielsen reported in 2013

that many global smartphone owners use their devices to

look at and often purchase products, conduct price

comparisons and read product reviews that directly influence

their buying decisions.5

The world will become more and more connected. The

“Internet of Things” (IoT) and the Machine-to-Machine (M2M)

technology behind it connect sensor-based objects, enabling

them to talk to each other and take action without human

intervention. Within the retail sector, this technology is already

beginning to improve supply chain management, the shipment

and distribution of goods, wireless payment and digital

signage. By 2020, it is estimated that 50 billion sensor-based

devices will be connected across the planet, revolutionizing how

we discover, experience and purchase products.6

The way we shop will continue to evolve. Exploratory window

shopping is not as prevalent as it once was. Today’s informed

consumers know what they want, where to find it and how to

1/ The New Retail Landscape

Demands New Business

Strategies

Mobile and digital technologies

are radically transforming the

retail landscape.

The New Retail Reality: A Few Facts and Figures

• Seventy percent of smartphone users plan to use their device for

online shopping in the coming year (International Data Corporation, 2014)

• Global mobile transaction volume is expected to experience

an average of 35 percent annual growth between 2012 and

2017, and achieve a market value of $721 billion with more

than 450 million users by 2017 (Gartner, 2013)

• In the 2013 holiday shopping season, more than $16 billion was

left on the mobile table due to abandoned mobile shopping carts(Jumio, 2014)

3 http://www.slideshare.net/wearesocialsg/social-digital-mobile-around-the-world-january-2014

4 http://www.digitalbuzzblog.com/infographic-2013-mobile-growth-statistics/

5 http://www.nielsen.com/us/en/reports/2013/mobile-consumer-report-february-2013.html

http://www.cisco.com/web/about/ac79/docs/innov/IoT_IBSG_0411FINAL.pdf

3

get the best price. The retail experience is

being shaped by the abundance of data that

is always available on consumers’ mobile

devices. Retailers must leverage this

connected world to provide an irresistible

in-store shopping experience, from pre-sale

to post-sale, to maximize repeat business,

referrals and revenue generation opportunities.

The most successful merchants will engage

customers using their preferred modes of

communication, target deals to their specific

interests, help them get what they need as

quickly as possible and motivate them to

purchase again soon. This is giving rise to

gamification, learning and entertainment as

critical elements of the shopping experience.

Technology is bringing in-store and online

customer experiences together. Savvy retailers

are leveraging mobile technologies to engage

consumers as they shop in Wi-Fi-enabled stores.

This allows merchants to interact with

customers who subscribe to digital promotions

or opt in to loyalty programs, by pushing out

time-limited offers or promoting items of

particular interest on digital signage. Location

and behaviour-based data analytics help

retailers gather the right customer information

for optimizing sales and generating revenue.

“It is our responsibility to drive the use of wireless technology within the retail sector to create

a better experience for our customers--and to build a better bottom line. There are many

ways for retailers to seize the mobile opportunity in cost-effective ways. This includes the

development and promotion of dynamic and consistent content across all channels--from

communication in-store to mobile apps, web, text, email and social media. A majority of

customers walk into a store or restaurant with a smartphone--requiring no capital

investment from retailers. Merchants need to integrate this channel into all in-store activities,

and take advantage of this captive marketing opportunity.”

Chris Covell, CIO, Boston Pizza

4

What This Means for Retailers: New Customers, Pain Points and Path to Purchase

The New Mobile-Assisted Shopper

7 http://www8.gsb.columbia.edu/globalbrands/m-shopper-research

Figure 1: Types of Mobile-Assisted Shoppers: Showrooming and the Rise of Mobile-Assisted Customers; Columbia Business School; September 2013

5

Today, retailers compete more aggressively than

ever for sales, positive brand awareness and

customer loyalty. Deep customer knowledge,

including purchase patterns and dynamics, is

key. In 2013, New York’s Columbia Business

School examined 3,000 shoppers in the U.S.,

UK and Canada to gain insight into how and

why consumers use their mobile devices in-

store. The study identified five unique kinds of

mobile-assisted shoppers7:

Wireless technology is transforming retail

transactions. With the emergence of the mobile

wallet, secure pin and chip point of sale (POS)

terminals, and RFID tags that provide real-time

product information, customers and merchants

alike will enjoy a more seamless purchase process.

Wireless technology also helps consumers find

what they want and checkout more quickly and

efficiently. It reduces customer frustration and

lost sales opportunities. But this technology is

more than simply convenient. It enables

commerce to happen anywhere and everywhere.

Consumers will soon be able to scan a barcode

in-store, purchase an item and coordinate

shipping to any location with a few taps on

their mobile device.

The study also identified the top three

reasons mobile-assisted shoppers buy in-store

even after finding the same product cheaper

online:convenience, urgency and immediacy.

Moreover, Columbia researchers found that 55

percent are willing to sign up for a loyalty

program to gain benefits on their smartphone

while in-store. It is important for retailers to

assess the mobile-assisted shoppers they serve to

develop the most impactful marketing strategies.

Separating Fact from Fiction: The Threat

of Showrooming

The increasing use of mobile devices by connected

shoppers has prompted growing concern about

showrooming. Despite the hype, an IBM study

recently found that this is no longer one of the biggest

threats to stores. While showrooming contributed to

nearly 50 percent of online purchases in 2012, this

number dropped to 30 percent in 2013.8

Columbia’s research also showed that only 25

percent of mobile-assisted shoppers are likely to be

swayed by competitor price. In fact, mobile-assisted

shoppers will often use a mobile device to access

the retailer’s own website while in-store to gather

additional information about a product or service

(such as reviews and ratings). Retailers should

therefore provide a cohesive in-store experience

that takes advantage of all channels, to help capture

these prospective sales.

In addition to a mobile-enabled website,

many retailers are increasing the strategic role

and value of the physical store to combat

showrooming. For example, many merchants

are now combining mobile content and in-store

activities such as free classes and information

sessions, complimentary beverages, price

matching programs and special deals. Traffic and

customer loyalty can be radically improved through

strategic marketing that merges the physical and

digital on-site experience.

Eliminating Barriers on the Path to Purchase

When developing and adopting a mobile strategy,

retailers should focus on creating a seamless path

to purchase. From the customer perspective, trust

remains one of the major barriers to the adoption

of mobile-assisted shopping. Users continue to

express concern about the storage of credit, debit

and other financial and personal information in

a mobile device that could be stolen or hacked. A

2012 Google study also identified several “usability

and experiential” factors that undermine consumer

adoption of mobile shopping technologies. This

reinforces the importance of creating relevant

content, rapid download time and user-friendly

applications targeting in-store customers.

The mobile revolution is also reconfiguring the

retail environment to stimulate greater in-store

traffic and create a highly differentiated experience.

For example, sporting goods stores may combine in-

store digital displays, mobile content and social media

that link marketing strategies to upcoming games

and competitions, local sports rivalries and

community events.

8 http://www.cnbc.com/id/101320824 6

The temporary pop-up shop is another phenomenon

that is capitalizing on mobile solutions. Retailers

such as JCPenney, Holt Renfrew, Microsoft,

Sephora and Gap are launching configurable

stores with dynamic themes, product offerings

and ambiance. Many of these merchants rely on

wireless solutions to promote products via digital

signs, as well as track inventory and facilitate

payment.

It is essential for retailers to invest in developing

a mobile-enabled workforce. To continually

enhance in-store customer service, stores such

as Nordstrom, Burberry, Apple and Shoppers

Drug Mart are equipping their employees with

smartphones and tablets. Sales representatives can

now quickly access product information (such as

sizing, materials or videos) or help customers find

goods that are unavailable in-store.

By accessing the store’s mobile website or backroom

inventory, associates and consumers can peruse

these virtually endless aisles to locate products

of interest and explore other offerings. In addition

to boosting productivity and achieving greater

sales conversion, a mobile-enabled workforce also

increases employee and customer satisfaction.

This helps build loyalty on both sides of the retail

equation, minimizing the cost of employee turnover

and maximizing sales revenue and profitability.

How can retailers use mobile technologies to reach

the connected consumer, address key challenges

“ M2M technologies are truly enabling the transformation of the retail sector. Wireless solutions

such as mobile broadband payment systems and Wi-Fi systems are enabling merchants

to capture customers and sales beyond the traditional bricks and mortar.  Retailers are

increasingly meeting new customers at community events, launching ‘pop-up stores’ in

parks, street markets and campuses, and in doing so, providing customers the ability to

complete purchases wherever they may be. Pop-up retail stores require the ability to quickly

set up and process secure credit card payments, and manage inventory. Mobile broadband

payment systems make this possible--enabling commerce just about anywhere.”

Graeme Harfman, Director,

Product Line Management, Sierra Wireless

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and create an exceptional in-store customer experience that

drives sales? This paper provides merchants with an overview

of mobile solutions that provide competitive edge in our rapidly

changing retail landscape.

Omni-Channel Strategy: Creating a Consistent In-Store and Digital Customer Experience

With the increasing availability of wireless connectivity and the

growing list of new smartphone capabilities, the connected

consumer can explore products, availability, ratings, reviews and

promotional offers—with a tap on their wireless device while

walking by or visiting a store. This data is almost limitless and is

readily available across social media outlets, mobile-enabled

websites and apps. The convergence of mobile technologies and

these customer engagement platforms provides many new ways

for retailers to reach customers in-store.

“Omni-channel retailing” enables customers to enjoy a consistent

and integrated experience across all shopping channels in

the mobile, digital and in-store environment.9 Shoppers

receive the same messages, source the same inventory and

make purchases whether shopping in-store or online using a

computer or mobile device. As outlined in Figure 2, there are

many digital, mobile and in-store touchpoints that influence

the customer shopping experience and path to purchase.

2/ Seizing the Mobile

Opportunity for Competitive

Advantage: Personalization, Productivity and

Profitability

Creating a Highly

Personalized Customer

Experience that Drives Sales

9 http://www.retailcustomerexperience.com/articles/sxsw-preparing-for-the-new-omnichannel-customer-experience/ 8

How does omni-channel marketing benefit retailers? It drives greater profitability. Research conducted by

IDC Retail Insights shows that omni-channel shoppers spend between 15 and 30 percent more than multi-

channel shoppers10 and exhibit strong brand loyalty, often influencing others to patronize and purchase

from a brand. To be truly effective, retailers must have a 360-degree view of their customers and

consistently cater to their specific needs and interests.

Leveraging the Right Customer Data to Drive Sales and Brand LoyaltyCustomers communicate and interact with brands in different w ays u sing d ifferent de vices. It is es sential fo r

retailers to understand the specific preferences, attributes and purchase history of their customers, and then

put this information to work across all customer touchpoints. There is a host of new technologies that allows

merchants to gather and analyze data on consumer location and behaviour. These can help retailers

segment and target prospects and customers based on shared demographic and behavioural patterns, as

well as maximize sales opportunities at each stage of the shopping process. So, what technologies are

currently available to retailers?

Today, M2M-enabled Radio-Frequency Identification (RFID) tags, geo-fencing and other location-based services (LBS) give retailers new customer insight, from simple store traffic patterns to customer preferences

10 http://www.bizreport.com/2009/10/have_you_met_the_omni-channel_shoppers.html# 9

Figure 2: Touchpoints influencing the customer shopping experience.

and shopping habits. When these behavioural

attributes are combined with other subjective

consumer insights, a retailer and its brands can

orchestrate targeted campaigns that drive greater

sales. Provisioning product and

promotional information relevant to the

customer when, where and how they want to

receive it is critical. This requires a sound

approach to the acquisition, management and

tracking of customer information from different

touchpoints.

A Customer Relationship Management (CRM)

system can provide comprehensive data-driven

and evidence-based insight into current and

prospective customers, and help develop more

effective marketing strategies. To ensure merchants

reap the greatest benefit, CRM must amalgamate

from all touchpoints, devices and media to create a

comprehensive view of the customer. This includes

purchase history, social media, retail subscriptions,

purchase preferences and text and email activity.

Many retailers are now experimenting with the

creative application of CRM and data analytic

technology. For example, physical retail stores

can now be outfitted with RFID sensors to create

digital customer touchpoints. These location-based

devices can create a more interactive customer

experience, while gathering real-time data on

customer location and shopping behaviour. They

also enable retailers to push timely and relevant

offers, enticing customers to “buy now,” while also

cultivating longer-term brand loyalty. This may be

achieved by delivering coupons to their mobile

“While we’ve only just scratched the surface with Mobile Shopper, the opportunities we see

with this platform are exciting and have the potential to transform our business. The Smart

Wi-Fi solution we offer today is a bonus for mall visitors, and allows us to gather critical

insights to solve real business challenges. We now have a better understanding of customer

traffic in areas of the mall and peak times of day, so we can design more relevant and

personalized marketing and engagement activities.”

Lyle Goodis, Vice President of Corporate Marketing, RioCan

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devices as they browse in a particular section, offering dynamic pricing on a particular product via in-store

digital signage or engaging customers through interactive displays. The goal is to use customer location-

based data to drive sales at the moment of greatest purchase opportunity.

In February 2014, Rogers Communications launched a mobile customer engagement solution designed to help

retailers better capitalize on such opportunities. RioCan, Canada’s largest shopping centre owner, has

been first to trial the Rogers Mobile Shopper

solution, which includes Smart Wi-Fi, in select

Ontario shopping centres. Mobile Shopper

combines a wireless network connection with

mobile applications to deliver relevant content, such

as daily offers and promotions, to customers who

opt in via their mobile device.

RFID tags are being used in-store by more and

more retailers, like Bon-Ton,11 to instantaneously

provide customers with product information.

Merchants can use these devices to track

which marketing displays and products are

generating the greatest customer interest and

sales conversion rates. They also enable real-

time inventory monitoring and management,

from warehouse to store.

Geo-fencing technologies are helping retailers gather

timely information and engage prospective customers in more personalized ways. Geo-fencing uses GPS or RFID

to define virtual geographical boundaries in a defined location.12 Retailers can use it to set up “triggers” so that

when an opted in mobile shopper enters or exits these perimeters, they receive promotional messages, special

offers and discounts via email or text. For example, Pizza Hut UK set up a geo-fence perimeter within a half-mile

radius of each of their 340 locations. When consumers travelled through a half-mile radius of one of these

restaurants, they received an SMS promotion on their mobile phone. During the 15 months Pizza Hut executed their

mobile marketing campaign, they found it was 142 percent more efficient in increasing incremental sales than other

marketing channels, 4.4 times more effective than TV ads and 2.6 times more effective than online ads.13

In 2013, the Bon-Ton department store

used Near Field Communication (NFC) RFID

tags to transform shoes on the retail shelf

into mobile marketing channels. With just a

tap of a smartphone to the RFID tag in the

shoe, shoppers learned whether the store

had the shoes in the desired size, colour

and style. If it was not available, the

shopper was guided to the nearest store

with the shoe in stock, or the company’s

mobile commerce site. Bon-Ton has

deployed hundreds of thousands of RFID

tags to more than 30 stores to date.

11 http://www.retailsolutionsonline.com/doc/bon-ton-it-investments-inventory-and-e-commerce-improving-0001

12 http://whatis.techtarget.com/definition/geofencing

13 http://www.tatango.com/blog/30-mobile-marketing-case-studies-you-need-to-bookmark/

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Digital signage can capture the

imagination and the impulse buy.

Digital signs allow merchants to

dynamically adapt advertising

content (from videos, images

and messaging to social media

and more) to appeal to specific

in-store customers, and increase

the probability of purchase. This

interactive medium is helping

retailers like 7-Eleven14 boost sales

of advertised products. Luxury

brands such as Gucci and Burberry have deployed interactive digital displays in flagship stores enabling

customers to browse through runway fashions with a swipe of the screen, or watch fashion shows live in-

store and place product orders on their smartphone. Digital signage also helps merchants create a more

memorable and engaging customer experience, as well as a leading-edge store environment.

Free Guest Wi-Fi and Mobile Apps: Retail Table Stakes

Free guest Wi-Fi and mobile apps are now table stakes for the competitive merchant. Free guest Wi-Fi lets consumers

use their devices while shopping in-store without incurring data fees. Consumer devices are also

guaranteed to operate everywhere in-store, minimizing the disruption that often occurs in low-coverage

areas. As well as enhancing the customer experience, these networks can help retailers deliver product

information to mobile devices through shelf tags and QR codes, gather real-time consumer behaviour data and

digitally engage shoppers.

Rogers Communications is collaborating with Colony Networks, a cloud-based network software company,

to equip retailers with robust Wi-Fi and data analytic capabilities. Colony’s hosted Wi-Fi intelligence platform

allows firms to gather information about customers and passersby from Wi-Fi access points. Retailers can

track customer traffic and electronic habits, identify and resolve flow bottlenecks in the store and make

informed marketing decisions that drive sales and customer interaction. Guest Wi-Fi can also help retailers

turn mobile apps into effective promotional and engagement tools. Maximum ROI may be achieved by

rewarding customer loyalty with coupons and in-store offers, enabling key tasks such as the development of

an electronic grocery list, or creating entertaining or gamified in-store experiences.

7-Eleven deployed digital plasma signs in 46 stores across

Denmark to advertise key products, increasing:

• Average turnover by 30%

• Coffee sales by 30%

• Energy drink sales by 32%

• New soft drink sales by 109%

• 59% in Danish pastry sales

• 319% in sales of a new phone card

14 http://www.miradamedia.com/industry-3-studies.php 12

Enhancing Customer Efficiency and Satisfaction:

Mobile Wallet and Secure Chip and Pin Payment

The mobile payment system is an innovation

of the retail revolution that lets consumers use

their smartphone to make payments quickly and

securely. Users simply upload credit and debit card

information to an online account, link it to the mobile

wallet application and swipe their mobile device

across a retailer’s point of sale terminal to complete

a sales transaction. Mobile wallet transactions can

often be completed in less than 30 seconds, reducing

customer frustration around long checkout lines.

Brand loyalty programs can also be integrated

directly into the mobile wallet and payment process.

In addition to offering instant rewards as a customer

pays for their purchase, retailers can digitally track

data such as offer redemption, customer location,

spend per visit, purchase history and sales to date.

Like other information captured by the retailer’s CRM

system, this information can be used to enhance the

customer relationship, increase loyalty and drive

future sales.

“Today, it is essential for retailers and restaurants to provide reliable in-store mobile access as

part of the customer experience. Guest Wi-Fi is no longer a perk; it is a fundamental element

of the store. It attracts and maintains customers, creating greater sales opportunities. It also

facilitates brand engagement. For example, at Boston Pizza, we are developing new gamified

apps that entertain guests, deliver a fun in-restaurant experience, and help build loyalty.

Without robust Wi-Fi, our guests can’t use the app at the table, causing the marketing

strategy-- and desired business results--to fall short. Although Wi-Fi imposes a cost on

retailers, it is an investment that delivers a high return.

Chris Covell, CIO, Boston Pizza

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A Case Study: Canadian Tire—A Global and Mobile Retail Leader

For more than 90 years, Canadian Tire Corporation, Limited (CTC) has been a part of the cultural fabric

of this country. The company started as a one-store operation in 1922 and now employs tens of

thousands of people from coast-to-coast. CTC and its corporate banners (Canadian Tire, Partsource, Gas+,

FGL Sports, Mark’s and Canadian Tire Financial Services) provide customers with the products and

services they need for everyday life in Canada.

The company, which originally focused on automotive parts and service, has shifted its gears towards

innovation and technology. If you ask Eugene Roman, he will tell you Canadian Tire is still committed

to being an “auto mobile” leader—a retailer that is “automatically mobile.” It is a commitment he

delivers on every day. As Senior Vice-President, Information Technology and Chief Technology Officer

Roman is leading this transformation across all banners.

Recognizing digitization as a critical factor in its future success, Canadian Tire is harnessing the power of

wireless technology to revolutionize every facet of its business and customer experience. It is a culture shift

that spans inventory management, employee training and store design, and every customer

touchpoint. Roman calls it an “E-Tail” transformation. This is not e-Commerce—it’s “Extreme Retail.” As

the company charts this new frontier, it is serving as leader in the retail industry.

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According to Roman, Canadian Tire’s “E-Tail”

strategy comprises three key focal points: the

mobilization of customer experience, workforce

and supply chain. It is an ambitious vision, one that

requires the company to establish a solid

foundation on which to build and execute a bold

strategy that includes:• A high density network that enables robust Wi-Fi

and intelligent in-store intercommunication;• A $50 million cloud computing centre in

Winnipeg that links to a mini-cloud centre in each

of its nearly 1,700 retail and gasoline outlets; • A digital asset and content management system

with a trans-media engine that serves as the

backbone of the corporate website and all

backend supply management systems; and•

Unwavering commitment across the entire

organization, from the Board to the front line.

With these fundamental elements in place,

Canadian Tire is well positioned for mobile action.

“It is important to deliver a consistent and engaging

customer experience across all channels—in-store,

online and on mobile devices,” says Roman. “In

support of this objective, we established R&D teams

with more than 300 top developers, 10 technology

development and gaming labs, and strategic

partnerships with external engineering experts and

SMEs. This investment enabled us to develop a new

website, mobile apps and data analysis solutions.

We are also digitizing our store floor. For example,

we are deploying shelf tags that enable customers to

scan barcodes in the aisle using their smartphones;

self-serve kiosks, and digital screens and touch walls

from 10 to 40 inches for product promotion. We also

have two lab stores where we are experimenting

with more technology, and evaluating response.”

Canadian Tire is also investing in the development

of a mobile workforce. “We are equipping in-store

teams with ‘employee-facing mobile devices’ such as

smartphones and tablets. This enables associates to

source all required product and service information

within three seconds from any point in the store. As

opposed to walking to a terminal to verify product

price, location and availability, employees can

now gather this information directly from a hand-

held device. This includes online product demos,

videos and games. This not only increases service

quality and sales opportunities, it boosts employee

satisfaction.”

What’s perhaps even more impressive is that the

company has achieved this progress within

21 months. As Canadian Tire establishes itself

as a wireless retail leader, the corporation is

already seeing the impact of its strategy on its

customers, employees and bottom line. “The

productivity gains alone justify this investment,”

says Roman. One thing is clear: “extreme

retailing” delivers extreme value in the

automatically mobile store.

These advancements will create new

customer touchpoints, personalized shopping

experiences and paths to purchase—as well as

greater opportunities for retail profit.

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Technology Prediction:

The Smartphone Will Morph into an Intelligent Server

“Retailers are finally viewing the smartphone as an intelligent server. Semantics?

No. The phone needs to be less of a ‘crackerjack’ container that serves as a

repository of millions of sundry digital applications, and more of a truly intelligent

device that performs as a server that can manage our world through smart

profiling and Application Programming Interfaces. As retailers, we must start

thinking about connecting our shopper’s phone to the Internet of Things (IoT) -

our things: our store, products and Point of Sale. We must consider our ‘store as

the APP’ with Wi-Fi, Beacons and MAC address opt-in. For years, retailers have

invested in bricks and mortar. It is time to return to the practice of expanding the

services and function of the store, and not window dressing the digital phone.

The consumer’s phone can activate the store, trigger location specific events,

and serve as the communication layer--but the store is where the retailer needs

to invest. This is what I call the physical app store.”

Gary Schwartz, Senior Vice President, DealNet Capital Corp; CEO, Impact

Mobile; Author of The Impulse Economy, and Fast Shopper, Slow Store

Registered Wireless Identities: Providing Greater Command

and Control of Mobile Information

In early 2014, Washington, DC-based firm Wireless Registry Inc.

launched the first global registry for wireless names.

Individuals and companies can register wireless names,

associate content to these names and provide meaning when

they are detected15. This type of registry could enable retailers

to assign a name and profile to their wireless network,

seamlessly interact with all types of sensor-based devices within

their vicinity and create a central repository for its identity,

brand and content.16

It will also allow consumers to establish a wireless profile

linked to their smartphones and other mobile devices, and

register preferences that define what mobile information they

receive. For example, by registering favourite coffee shops,

clothing stores and restaurants in a wireless profile, users could

automatically receive the latest information, product offers

and deals as they enter these merchants’ wireless spaces.17 A

wireless registry puts greater information management control in

the hands of the consumer. As such, subscription-based

membership and opt-in loyalty programs will become critical to

retail marketing strategies.

Haptic Technology: Putting Retailer and Consumers in Virtual Touch WirelesslyHaptics is the science of applying touch sensation and control

to interaction with computer applications. By using special input

and output devices (such as joyticks, data gloves or other

devices), users can receive feedback from computer

applications in the form of tactile sensations in the hand or

other parts of the body.18 Well known as the innovation that

underpins smartphone touch screens and multi-sensory

gaming consoles, haptic technology enables a user to feel as

though they are physically interacting with virtual objects.

3/ What’s Next? Transformative Technology of

the Future

Over the next three to five years,

the retail sector will experience

even greater transformation

as M2M-enabled technologies,

applications and services

continue to evolve.

15 http://www.prnewswire.com/news-releases/the-wireless-registry-launches-worlds-first-global-registry-for-wireless-names-240222411.html

16 http://www.theimpulseeconomy.com/

17 http://www.theimpulseeconomy.com/

18 http://whatis.techtarget.com/definition/haptics

17

In the next few years, this technology will enable retailers to add new sensory dimensions to the

customer experience. For example, in-store and online customers could use their smartphones to

virtually feel the texture of clothing, the shaft of a golf club or hockey stick, the softness of a children’s toy or

the suppleness of a purse or baseball glove. In March 2014 at the World Mobile Congress Conference,

Fujitsu launched a new tablet that simulates the smoothness or roughness of an object.19 Despite the

advantages presented by haptic technology, many merchants are unaware of its potential application in

retail.

Wearing Mobile Technology Well

Wearable technology (such as smart glasses, watches, shoes and clothing) is generating a lot of

buzz among consumers. Featuring sensors, advanced electronics, computing power and wireless

technologies, connected clothes and accessories process and share data, and perform designated

tasks. For example, the Google Glass™ wearable computing device resembles a pair of sunglasses

with a tiny smart device embedded in the upper corner of the lens. It features a touchscreen, camera and

display that work together to act on voice commands, such as taking photos or acquiring traffic

information. The Pebble™ Smart Watch lets users receive texts and email, make calls, take photos, track

activities and upload apps. The shipment of wearables is expected to exceed 19 million units in 2014,

and skyrocket to 111.9 million units in 2018.20 This trend is prompting some brands to integrate wearables

into their omni-channel marketing strategy; for example, Kenneth Cole recently developed a new Google

Glass app for the launch of its new cologne.21

19 http://www.thisisnumero.com/2014/03/06/fujitsu-reveals-haptic-tablet-at-mobile-world-congress/

20 http://www.idc.com/getdoc.jsp?containerId=247318

21 http://www.businessinsider.com/kenneth-cole-promotes-fragrance-with-glass-2014-3

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Mobile technology offers retailers another way to engage with

customers who are shopping in-store. How can Canadian retailers

capitalize on the opportunities presented by mobile technologies?

• Increase knowledge of current and prospective customers

by gathering new information about client preferences

and shopping habits, and putting this data to work in

marketing strategies;

• Assess current marketing strategies and use customer

data to increase traffic, attract and retain loyal customers,

and drives sales; and

• Engage experts to explore, develop and implement

mobile solutions and strategies that address customer

and business needs, and deliver results.

Increase Knowledge of Current and Prospective Customers

When considering how to integrate mobile technologies into

a retail business model and marketing strategy, it is essential to

first determine:

• How customers engage your company today and how

they would like to engage tomorrow;

• What they value most in a shopping experience; and

• What influences their shopping decisions.

4/ How Can Retailers Seize

This Mobile Opportunity?

Adopting new technology

is an investment but the

benefits are numerous.

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Assess Existing Marketing Strategies, Channels

and Business Models

When considering how mobile technologies could

help achieve business objectives, retailers must

assess the efficacy of current marketing strategies,

business models and customer engagement

mechanisms in light of the mobile-assisted shopper.

This helps retailers identify key opportunities,

stumbling blocks and pain points. Questions to

consider:

• What marketing strategies and tactics

drive the greatest results today?

• What experience do you create for

customers? Is this experience consistent

across channels?

• Could mobile technologies be employed to

enhance the in-store customer experience?

Collaborate with an Expert

When exploring mobile solutions, it is important for

retailers to collaborate with experts who can provide

trusted guidance on technologies that meet the needs

of the organization and its customers. In Canada,

Rogers Communications works with retailers to help

them capitalize on mobile solutions that address their

specific business objectives and drive business results.

As Canada’s leading diversified communications and

media company, Rogers is introducing innovations

to improve customer experience, as well as boost

retailer productivity and profitability. The company is

pleased to help retailers:

• Assess their requirements and clientele,

and develop a complimentary business

case analysis;

• Propose mobile solutions that target

key opportunities and challenges, and

generate high return; and

• Work collaboratively with merchants on the

adoption, implementation and integration

of these technologies into their business,

and accelerate the delivery of results.

In addition to Rogers, Canadian retailers also have

access to Wavefront, Canada’s Centre of Excellence

in Wireless Commercialization and Research (CECR).

Wavefront aims to accelerate the growth and

success of wireless companies by connecting them

with critical resources, partners and opportunities,

to drive economic and social benefits for Canada.

To learn more about how Rogers and Wavefront

can help you develop a mobile strategy

that increases the competitiveness of your

retail business, please visit http://enterprise.rogers.

com/on/en/industry-expertise/retail or contact

Nathan Robinson, Business Development Manager,

Wavefront (1.416.571.3083 or nathan.robinson@

wavefrontac.com).

20

• Nikolas Badminton, National Digital Strategist and Advisor

• Derek Colfer, Head of Mobile Innovation, Visa Canada

• Chris Covell, Chief Information Officer, Boston Pizza;

Former Chief Technology Officer, Best Buy;

and Former Vice President, Technology Infrastructure, Indigo

• Ian S. Cruickshank, Sales and Marketing Executive,

Digital Strategist and Partner, Chasm

• Graeme Harfman, Director of Product Line Management,

Sierra Wireless

• Tim Hayden Tim Hayden, CEO of TTH Strategy;

Co-Author of The Mobile Commerce Revolution (Pearson, 2014)

• James Maynard, President and CEO, Wavefront

• Eugene Roman, Senior Vice-President,

Information Technology and Chief Technology Officer,

Canadian Tire Corporation, Limited

• Gary Schwartz, Senior Vice President, DealNet Capital Corp;

CEO, Impact Mobile; Author of The Impulse Economy, and

Fast Shopper, Slow Store

Wavefront would like to extend

sincere thanks to the following

leaders who contributed their

expertise and insight to the

development of this paper:

A special thanks to our sponsor:

Rogers Communications helps businesses of all sizes across Canada leverage the opportunities that come from enabling their people, assets, customers

and networks to connect anyplace, anytime. Our expanding portfolio of solutions helps businesses

mobilize their workforce, monitor their fixed and mobile assets, manage their networks and suppliers,

and build customer loyalty. We also offer a full suite of professional and managed mobility services to

ensure every implementation is successful and every solution expertly managed on an ongoing basis. All our enterprise solutions and services are backed by

our award-winning Business Care.

www.rogers.com/enterprise

Acknowledgements

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